To accept UPI payments, an Indian business can use a QR code, a UPI payment link or collect request, a payment gateway on its online store, or a POS app — and for person-to-merchant payments there are no merchant fees today. UPI is the default way most Indian buyers pay, so accepting it well is one of the highest-impact things a seller can do. Here’s how to set it up.
What is UPI?
UPI (Unified Payments Interface) is India’s real-time payment system that lets customers pay instantly from their bank account using a phone — by scanning a QR code, tapping a payment link, or approving a collect request. With hundreds of billions of transactions a year, it has become the everyday payment method for Indian shoppers, online and in-store.
Ways to accept UPI payments
| Method | Best for | How it works |
|---|---|---|
| QR code | In-store, markets, counters | Customer scans your static or dynamic QR and pays from any UPI app |
| Payment link / collect request | WhatsApp, Instagram, remote sales | You send a link; the customer taps and approves the payment |
| Payment gateway | Online stores and checkouts | UPI appears as an option at checkout alongside cards and wallets |
| UPI on POS | Retail with billing | The POS generates a dynamic QR or request for each bill |
| UPI AutoPay | Subscriptions, EMIs | Customer authorises recurring debits up to a set limit |
Most sellers combine two or three — a QR code at the counter, payment links for WhatsApp orders, and a gateway on the website.
How to set up UPI for a small business
- Get a UPI ID linked to your bank or current account, or sign up with a payment provider.
- Generate a QR code for in-store and printed use.
- Add UPI at online checkout through a payment gateway or an India-ready commerce platform.
- Enable payment links so you can collect from WhatsApp and Instagram buyers.
- Reconcile daily — match settlements to orders so nothing slips through.
Is accepting UPI free?
For person-to-merchant (P2M) UPI transactions, there is currently no MDR (merchant discount rate) — so basic UPI acceptance is effectively free for merchants. This is a major advantage over cards, which carry processing fees. Payment gateways may still charge for value-added services, faster settlement, or other payment methods, so check what’s bundled.
UPI vs cards vs COD
| UPI | Cards | COD | |
|---|---|---|---|
| Merchant fees | None (P2M) today | ~1–2% typical | Courier/COD fees + RTO risk |
| Speed | Instant | Instant | On delivery |
| Buyer reach | Very high in India | Moderate | High in Tier 2/3 |
| Failed/lost payments | Low | Low | Returns add cost |
The practical answer for most Indian sellers: offer all three. UPI as the default, cards for those who prefer them, and COD to reach buyers who don’t pay online yet.
Reduce failed payments and reconciliation headaches
- Use a reliable gateway with automatic retries.
- Show a clear success/failure status so customers don’t double-pay.
- Offer fallback methods at checkout.
- Reconcile settlements daily and watch for pending transactions.
How QuicShop helps
QuicShop is UPI-native: UPI, cards, wallets, COD and Pay Later are built into checkout, with webhook-driven order confirmation so paid orders are recognised automatically. You can also send payment links for WhatsApp and Instagram orders. Because it’s built for India, you’re not bolting a payments plugin onto a foreign platform — it works the way Indian buyers already pay.
Frequently asked
How can a small business accept UPI payments?
You can accept UPI through a static or dynamic QR code, a UPI payment link or collect request, a payment gateway on your online store, or a POS app. Most sellers use a QR code in-store and a gateway or payment link online.
Are there any charges for accepting UPI payments?
For person-to-merchant (P2M) UPI transactions there is currently no MDR (merchant discount rate), so basic UPI acceptance is effectively free for merchants. Payment gateways may charge for value-added services, settlement, or other methods like cards.
Do I need a current account or payment gateway for UPI?
A QR code linked to your UPI ID can settle to a personal or current account for simple in-store use. For online stores, subscriptions, or automated reconciliation, a payment gateway or aggregator with a current account is the better setup.
Can I accept UPI for recurring or subscription payments?
Yes. UPI AutoPay lets customers authorise recurring debits up to a set limit, which is useful for subscriptions, EMIs and memberships.
How do I reduce failed UPI payments?
Use a reliable gateway with retries, show clear payment status, offer fallback methods like cards and COD, and reconcile settlements daily so failed or pending payments are caught quickly.
See QuicShop set up for your store
GST, UPI, WhatsApp and shipping built in — from ₹2,999/month. We onboard every seller personally.